Influence of Monetary Remuneration on Workplace Performance among Technical and Vocational Education and Training (TVET) Graduates in Uganda Mineral Water Production Industry

Abstract

Skilled TVET graduates are essential to sustaining Uganda’s rapidly expanding industrial base. However, despite the surging demand for technical expertise, companies often fail to implement effective compensation strategies. The pay structures do not adequately value TVET skills or match job contribution, leading to widespread employee dissatisfaction and low motivation. Inconsistent compensation, poor performance reward systems and internal pay disparities are key factors driving down staff commitment and overall workplace efficiency. Therefore, this study sought to investigate the relationship between monetary remuneration and workplace performance to determine how financial incentives, salaries, and other forms of compensation influence the performance outcomes of TVET graduates in Uganda’s mineral water production sector. The study was guided by principles of Human Capital Theory and adopted positivist paradigm. Descriptive research design was employed targeting 90 TVET graduates working in three selected mineral water production firms. A stratified random sampling technique was used to sample 73 respondents. Data were collected through a structured, self-administered questionnaire comprising closed-ended questions rated on a five-point Likert scale. Validity was assessed using the Content Validity Index (CVI), while reliability was confirmed through a pilot test analyzed using Cronbach’s Alpha, where a coefficient of 0.7 or higher indicated acceptable internal consistency. Analysis utilized descriptive statistics, Pearson correlation, and simple linear regression via using the Statistical Package for the Social Sciences (SPSS version 20). Descriptive analysis showed moderate satisfaction with pay (xˉ= 3.2), with timely salary payments and recognition of qualifications receiving the highest ratings (xˉ= 3.8), while allowances and gratuity benefits were rated low (xˉ= 2.2). Workplace performance was rated high (xˉ= 4.15), particularly in skill utilization and minimizing resource waste (xˉ= 4.2). Correlation analysis indicated a strong positive relationship between monetary remuneration and workplace performance (r = 0.844, p < 0.001). Regression results further confirmed monetary remuneration as a strong predictor of performance (β = 0.844, p < 0.001), accounting for 70.6% of the variance in workplace performance. These findings demonstrate that timely and structured pay, salary differentiation by qualification and performance-linked incentives substantially enhance productivity among TVET graduates in the mineral water sector. It is recommended that company management prioritize the immediate review and standardization of auxiliary benefits (e.g., gratuity and allowances) to enhance employee morale, secure long-term talent retention, and close the identified satisfaction gap.